The wages cap reduces superannuation too

The NSW Government’s wages caps not only hurt nurses and midwives while they are working – they also have lasting, harmful consequences after they retire.

By 2021–22, an experienced nurse or midwife had already lost over $1700 in superannuation contributions on top of the $17,500 reduction in their wages that year. Forecast forward, that loss of annual contributions swells to over $2200 by 2023–24, according to the report by the Australia Institute. After a decade of capped pay, super balances for experienced nurses and midwives were almost $7800 lower than if the pre-cap wage trajectory had been maintained. The loss grows quickly in future years – by 2023–24 the typical nurse or midwife will have lost over $12,500 in their super balance.

The wages cap makes it likely that more nurses will join the growing proportion of the population who cannot afford to buy a home.

NSWNMA general secretary, Shaye Candish, says that thanks to the NSW government’s ongoing wage caps, most nurses and midwives will fall well short of the thresholds considered for a “comfortable” retirement.

“Nurses and midwives across NSW will be unable to retire in dignity, the longer these cruel wage caps remain in place.” n

$7800

by

2021–22 $12,500 by 2023–24

WHERE THE PARTIES STAND ON WAGES Coalition

The Coalition capped wages at 2.5 per cent from 2012 to 2020.

In 2020–21 during COVID, pay rises were limited to 0.3 per cent.

In 2020-21 during COVID, nurses and midwives only received a 0.3 per cent pay rise.

They are still committed to a cap on public sector wages.

The Greens

The Greens are committed to repealing the NSW Public Sector Wages Policy, removing the wage cap on public sector workers and restoring the autonomous NSW Industrial Relations Commission as the independent umpire in industrial disputes.

Labor

Leader Chris Minns says Labor will abolish the wages cap and replace it with a system of bargaining based on productivity.